Platinum Entertainment, Inc.
Ticker: PTET 2001 Butterfield Road, Suite 1400
Exchange: NASDAQ-National Market Downers Grove, Illinois 60515
Industry: Manufacturing (708) 769-0033

Type of Shares:Common Shares Filing Date:12/12/95
U.S. Shares:2,650,000 Offer Date:3/12/96
Non-U.S. Shares:0 Filing Range:$12.00 - $14.00
Primary Shares:2,500,000 Offer Price:$13.00
Secondary Shares:150,000 Gross Spread:$0.91
Offering Amount: $34,450,000 Selling:$0.55
Expenses:$900,000 Reallowance:$0.10
Shares Out After:4,824,770

ManagerTierPhone
Donaldson, Lufkin & Jenrette Securities Corp.Lead Manager (212) 504-4525

Auditor: Ernst & Young
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
5/31/95 11/30/95 11/30/94 11/30/95
Revenue:$15.36$12.96$6.13Assets:$11.45
Net Income:-$4.84$0.42-$1.57Liabilities:$17.93
EPS:-$2.12$0.05Equity:-$6.48

Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year,
unaudited figures are partial year

Business Description
The company is a producer of recorded music for a variety of music formats. The Company specializes in markets that it believes offers growth and profit potential. The Company initially targeted Gospel music as such a market. In 1993, the Company acquired the music catalog of Lexican Music, Inc., which had been in the Gospel music business for approximately 20 years. Through Lexicon other catalog acquisitions and artist development, the Company has developed a significant presence in the Gospel market. Since April 1995, the Company has had more album titles in the Top 40 Gospel Album Chart than any other record label. According to Billboard Magazine in its centennial issue the Company's catalog of mastered recordings included eleven of the top 40 best selling Gospel records of all time.

Use of Proceeds
The company anticipates to use the net proceeds of this offering for repayment of bank and related party indebtedness, redemption of Series A-1 Preferred Stock and for working capital and other general corporate purposes.

Last updated: 10/28/96

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